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Corporate universities, business schools and EdTech: yes Is there a chance of competition?
Corporate universities have significant experience in training executives at various levels, which allows them to effectively transfer knowledge and skills. In this regard, many of them are beginning to offer their programs to the external market. This raises the question: are corporate universities able to compete with traditional business schools in this field?
On the one hand, corporate universities have advantages such as a deep understanding of the specifics of the industry and the ability to integrate practical experience into curricula. On the other hand, traditional business schools offer a wide range of educational programs and have an established reputation.
Thus, the competitiveness of corporate universities in executive education depends on the quality of the programs offered, their compliance with modern business requirements and the ability to adapt to a rapidly changing market. It is important to note that the successful integration of practical and theoretical training can be a key factor in this competitive struggle.
Doubts about the need for corporate universities to enter the external market are entirely justified. The primary objective of these educational institutions is to support and develop their parent companies and train their executives. Internal needs and a focus on corporate training fully absorb all resources and attention. Entering the external market requires a clearer and more tangible goal than simply pursuing profit. Corporate universities must focus on creating value for their organizations, not short-term financial gains. SberUniversity is actively expanding its horizons by offering educational programs to external audiences. The primary goal of this move is not only revenue generation but also an effort to improve financial literacy and professional skills in society. The university wants to share its experience and knowledge, helping people develop and adapt to rapidly changing market conditions. Thus, SberUniversity fulfills an important social mission, fostering the development of qualified specialists and supporting innovation in various industries. We entered the external market to support the development of Sber's client relationships as part of its digital transformation. Training is an important element through which we achieve this goal. Revenue in this model is the result of our progress toward this ambitious goal.
In 2023, at the Corporate University Forum, which SberUniversity participated in, the focus was on the commercialization of educational programs. We did not aim to analyze all corporate universities, but focused on exploring this topic. Entering the external market turned out to be a less common practice; only a few corporate universities have decided to take this step. Those who offer their services outside the company, like us, do so not for profit, but to achieve other strategic objectives.
If parent companies truly set the goal of maximizing revenue, corporate universities can become a serious alternative to business schools. These educational institutions can provide employees with specialized knowledge and skills that meet the specific needs of the business. As a result, companies can not only reduce training costs but also improve the skills of their employees, which in turn can lead to increased profits. Thus, corporate universities have the potential to compete with traditional business schools by offering a more focused and practical education.
The specifics of educational segments require detailed consideration. Business schools can successfully coexist, occupying different niches. For example, corporate universities demonstrate their effectiveness by offering short- and medium-term educational solutions focused on practical tasks. SberUniversity focuses on relevant topics such as digital transformation, finance, and risk management. These areas allow us to share the expertise accumulated at Sber, enriching our educational programs. Thus, we have formed a line of programs that meet the needs of modern business and current trends.
Programs that are traditionally considered leading in Business schools, such as MBAs and executive MBAs, are not ideal for corporate universities. These institutions primarily focus on solving practical problems and imparting specific experience, unlike business schools, which emphasize theoretical knowledge. Corporate universities strive to develop employees' professional skills by adapting training to the real needs of business and ensuring the practical application of acquired knowledge.
There is some competition in the field of Executive Education, but each organization has its own unique niche, target audience, and focus. This allows clients to choose programs that best suit their specific goals and needs. Importantly, the diversity of educational offerings helps to more accurately meet the needs of students, making the Executive Education market dynamic and diverse.
Considering that corporate universities already have experience developing educational programs for managers and teaching IT skills, it is worth discussing the possibility of their competition with the EdTech industry, including online schools that teach applied professional skills. However, as you have already noted, corporate universities may not have this objective. This suggests that their primary focus is on internal employee development and corporate culture formation, which differs from the challenges faced by EdTech companies targeting the mass market and a variety of learning formats. Competition may arise in the future, but for now, corporate universities will likely continue to develop their unique programs, tailored to the needs of their organizations. This is not our field and is a fundamentally different type of business. Currently, I am not aware of any examples of corporate universities developing in this direction. We specialize in management training and IT specialist training. Training is offered both on the SberUniversity campus and online. We have our own digital platforms for delivering educational programs, but they are not focused on mass sales in the B2C segment. In contrast, EdTech primarily focuses on B2C, including platforms with extensive content, sales teams, and fully-fledged sales systems.
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Generative artificial intelligence (AI) will significantly change the skills and approaches to training IT specialists, according to a McKinsey analysis. The use of generative AI in information technology will lead to the need to master new competencies and adapt existing ones.
There are several key aspects that will be important for IT personnel as generative AI is implemented. First, specialists will need to develop skills in machine learning algorithms and neural networks, which will form the basis for effectively using new technologies. Second, critical thinking and analytical skills will become especially important, as IT specialists will analyze the results of generative AI and make decisions based on the data.
IT personnel training will require a rethinking of traditional methods. Companies will need to implement modern educational approaches, including hands-on training and online courses, to enable specialists to quickly adapt to technological changes.
Thus, generative AI will not only change the skills of IT personnel but also transform the learning process itself, creating new opportunities for professional growth.
"Growing" Juniors into Middles as a Challenge for Corporate Universities
SberUniversity is actively working to train IT specialists and offers a range of effective programs and courses to develop Junior specialists to the Middle level. These programs emphasize practical skills, relevant technologies, and real-world projects, allowing students to gain valuable experience and confidence in their knowledge. The training includes both theoretical aspects and practical assignments, contributing to a deeper understanding of the subject. Furthermore, SberUniversity collaborates with leading companies, allowing it to integrate current trends and market demands into the educational process. This ensures graduates are highly competitive and prepared for work in a modern environment.
We are actively working to develop entry-level specialists into middle-level professionals. This is a complex task, with no limit to perfection. For juniors to successfully grow, it is necessary to establish integration with real-world work tasks. Junior training can occur without deep immersion in practical work, but continued advancement requires constant work on real projects. We are currently facing the challenge of setting up this integration. Working with Sber's technology team, we are determining which platform solution will be optimal for this process and how to integrate it into work tasks and training. Our goal is to provide the most effective support for the transition from junior to middle-level and beyond.
Currently, the market lacks ready-made, effective methodological solutions for quickly promoting juniors to middle-level professionals. There is an active search for approaches that can accelerate the professional growth of entry-level specialists.
I agree with this opinion.
When effective solutions are found, they can be scaled up. This could be a unique opportunity for large corporate universities, which will be able to offer their services to external clients. Currently, both the IT and EdTech industries face a serious problem with an oversupply of junior developers, while there is a shortage of qualified middle-level developers in the market. It is important to understand that raising a junior to a middle-level developer is impossible with standard courses; this process requires practical experience, which can only be gained in a working environment. Therefore, corporate universities can play a key role in solving this problem by providing high-quality training and mentoring.
Many companies are interested in offering services to train junior developers to the middle-level in the external market. However, such an initiative could lead to increased competition for talented specialists. Sending your juniors to external courses may cause concern among colleagues from other organizations. It's important to consider how to implement this practice in the external market to avoid unnecessary anxiety and conflict.
You mean that if you offer a service to develop entry-level specialists to the middle level in the external B2B market, other companies may be wary of sending their employees to SberUniversity. This is due to the risk that Sber could attract the best specialists.
I understand that similar considerations may arise among the managers of other companies.
By considering not only the B2B but also the B2C segment, you can create an environment in which entry-level specialists will actively seek to study at SberUniversity and are willing to pay for their education. It is important to offer attractive programs and courses that meet the current demands of the labor market. By focusing on developing skills in demand in various industries and providing opportunities for practical experience, you can attract young people interested in their own professional growth. A focus on modern technologies and innovative teaching methods will also play a key role in generating interest in studying at our university.
The key question is how to effectively use internships to transition from junior to mid-level professionals. Internships play a crucial role in professional growth, allowing you to develop skills and deepen your knowledge. It is important to focus on real-world projects that will help improve your competencies and understanding of the subject area. Active participation in teamwork, solving complex problems, and continuous self-learning contribute to rapid progress. Thus, the conscious use of internships will become the foundation for successful career growth in the IT field.
How Corporate Universities Can Benefit Higher Education
Let's reflect on the future of education. Currently, many criticize universities for not sufficiently adapting to the demands of the labor market. This means employers are forced to provide additional training or retraining for graduates when they begin their first job. Perhaps in the future, corporate universities will begin training specialists from scratch, focusing on the specific tasks and needs of their organizations. This could lead to such institutions replacing traditional universities, offering a more focused and relevant education that meets modern market demands.
Criticism of the education system is common, and indeed, there are many aspects that require change and improvement. However, in my opinion, attempts by corporate universities to replace traditional higher education are not advisable. Corporations, no matter how much they strive to do so, are not up to the task. Higher education has unique characteristics and tasks that corporate structures cannot fully compensate for.
It is impossible to form a A complete set of applied skills that will remain relevant throughout life. In any case, after completing your studies, you will need to constantly update and expand your knowledge. Moreover, during the years while a student is studying at university, technology develops rapidly, which directly impacts work processes. For example, four years ago, artificial intelligence was at a different level of development than it is today. Thus, the main goal of higher education is to prepare a person for life, teaching critical thinking and the ability to adapt to new roles and labor market demands.
The task of aligning students' ideas with real business conditions can be effectively achieved through various options for joint programs and the deep integration of companies into the educational processes of universities. For example, Sber has 52 partnership programs with various universities. Such collaborations open up more opportunities for students and universities than creating their own educational institutions.
Why the question "why" arises? This term is often used to express curiosity or a desire to understand the causes of certain events or phenomena. In various contexts, "why" serves as a research and analysis tool, allowing us to delve deeper into the essence of things. Understanding cause-and-effect relationships is important in both our personal and professional lives. By asking questions, we develop critical thinking and improve our ability to make informed decisions. It's important not only to ask "why" but also to actively seek answers to expand our knowledge and improve our quality of life.
Partnerships develop a broad perspective that allows students to see not only the activities of large companies like Sber but also a variety of other options. Higher education should offer a variety of opportunities for students. Limiting them to a single technological and professional stack narrows their horizons and deprives them of the chance to develop in different directions. Students with access to a variety of partnerships can better understand the market, evaluate different approaches, and choose the most suitable career path for themselves.
Universities concentrate a significant amount of specialized expertise. Corporate universities do not possess all the necessary skills and knowledge inherent in traditional educational institutions. One such area is research, which corporate universities are not always able to master or implement effectively. This underscores the importance of universities in the educational system and their unique role in training specialists with deep theoretical knowledge and practical skills.
I advocate for closer cooperation between universities and companies so that students and faculty can stay abreast of current trends and changes in the industry. Companies often move faster than educational institutions, and this convergence will help ensure higher-quality training of specialists who meet the modern labor market requirements.
A broad perspective is indeed an important aspect of education, while a narrow view of things can limit professional opportunities. However, it is no secret that many applied master's programs at universities, created in collaboration with businesses, are focused on training specialists for specific companies. In this context, we can talk about the existence of a "tunnel" approach to education, which can narrow students' horizons and reduce their competitiveness in the labor market. Therefore, it is important to find a balance between specialized skills and general knowledge so that graduates can successfully adapt to changing conditions in various economic sectors.
In a master's degree, specialization becomes more relevant compared to a bachelor's degree, as over four years of study, students develop a general knowledge base and begin to focus on future employment. At this stage, they have the opportunity to choose a program that involves collaboration with a specific employer. Notably, most of Sber's joint programs with universities are aimed specifically at master's students.
A partnership program does not always imply uniformity. Let's consider the MIPT partner master's program, focused on high-tech business. The main goal of this program is to train talented specialists with in-depth knowledge of technology for work in business. The choice of career is, however, left to the students. They can choose to work for large corporations such as Sberbank, or realize their ideas by creating their own technology startups.
This program demonstrates why it makes sense for corporations to partner with Universities are more likely to train specialists than to do it themselves. MIPT has strong technological expertise and numerous research laboratories. In theory, it's possible to try to create a similar infrastructure, but this is costly and not always justified. An effective partnership with a suitable university ensures better results and synergies in educational processes.
You noted that corporations can support both students and faculty in their efforts to remain relevant. SberUniversity has interesting experience in this area, particularly through its Summer Digital School for university and college teachers, which has been running for five years. This program was created to improve faculty qualifications and integrate modern digital technologies into the educational process. At the school, participants learn relevant teaching methods, master new digital tools, and gain knowledge of current trends in education. This allows teachers not only to improve their skills but also to adapt their educational programs to the demands of the times.
The summer school offers ten thematic tracks, four of which are dedicated to information technology, two to finance and risk management. The program also includes tracks on ESG, project management, soft skills development, and product design. Within these tracks, we share useful developments and tools. The training takes place online and lasts two months.
Sber views this project as a charitable one. It is available to participants completely free of charge, and the main goal is to share practical experience. We strive to encourage teachers to use our tools and case studies in their teaching, which will improve the quality of education and introduce modern approaches into the learning process.
We conduct monitoring throughout the year to determine how and by whom the provided content is used. We do not set specific KPIs in this process, as the goal is to evaluate how useful the content was for teachers and whether it reached students. This is important for our understanding of the effectiveness of the materials we've created and shared.
Currently, the proposal to have IT company employees teach at educational institutions is being actively discussed. However, it's worth considering that a more effective solution might be sending university professors to IT companies. This will allow them to acquire relevant practical skills and become familiar with modern tools and methods of working in the industry. Thus, professors will be able to impart not only theoretical knowledge but also real-world case studies to their students, significantly improving the quality of IT education. It's important for educational institutions to adapt to the rapidly changing world of IT and prepare specialists who meet market demands.
I believe it's possible to successfully combine student and teacher training. Teacher training has a lingering effect that is essential for the entire educational system. We teach students today, but tomorrow we'll need to prepare a new generation. Professors, in turn, are capable of transmitting and expanding the knowledge they've acquired. Investments in their professional development are essential if we strive to further transform and update the education system.
Alexander, you have experience in both business and higher education. More broadly, what advantages can corporate universities provide for universities? What unique resources and knowledge do corporate universities possess that could be useful for educational institutions?
The insights of Roman Baskin, Director of the Russian Railways Corporate University, on the role of corporate universities are very relevant. He noted that corporate universities are closer to business than traditional higher education institutions. This allows them to better understand the current needs of business, its language, and its objectives. At the same time, corporate universities have a deeper understanding of educational processes and the fundamentals of curriculum development. They are familiar with the education market, which allows them to effectively integrate the knowledge and skills necessary for business. Thus, corporate universities play an important role as a link between business and higher education, promoting more effective training and development of specialists who meet the requirements of the modern labor market.
We can share our experience in business realities and the practical tools we use in our work with universities. Our approaches and methods, which produce results within the company, can be useful for both faculty and university management teams. We summarize this experience and share it within the corporation, and we are confident that it can be successfully adapted to the educational environment.
What is the essence of personalized learning in a corporate environment?
In our conversation, I made two assumptions about the possible further development of corporate universities. The first assumption concerned entering the external business education market or the EdTech sphere, the second, creating their own higher education. You rejected both of these options. What do you think are the possible paths for corporate universities to develop in the future?
Currently, it's important to focus on deepening the knowledge and skills of employees, not just scaling. The primary goals of corporate universities should be focused on developing within the company itself. This will improve operational efficiency and enhance the organization's competitiveness.
By depth, I mean a deeper understanding of human nature and behavior. In this regard, we have more tools and methodologies than higher education and other educational institutions often offer. This allows us to more effectively explore and analyze complex aspects of personality, which in turn facilitates higher-quality learning and development.
Why more? This is a question that many people have. Increasing opportunities and resources is becoming a hot topic in various areas of life. We strive for more in career advancement, personal relationships, and financial well-being. Understanding why we want more can help us achieve our goals and improve our quality of life. Exploring the reasons for this desire can lead to deeper self-knowledge and an awareness of our true desires. It's important to ask ourselves: what exactly do we want to improve and why is it important to us?
When a person works in a corporation, we have extensive information about their professional skills and personal qualities. This knowledge opens up numerous opportunities for us to optimize their training, recommendations, and career advancement. We can more precisely tailor development programs and offer personalized solutions, which contributes to more effective employee growth and increases their professional value.
Secondly, it is important to delve deeper into what and how we teach. There is significant potential for changing the approach here, especially with the use of AI assistants. Integrating artificial intelligence technologies into the educational process can improve the quality of learning and adapt it to the individual needs of students. This will not only increase the effectiveness of material absorption but also create a more interactive and engaging educational environment.
Modern technologies and their application are in the early stages of development. In the future, we will be able to create a connection between understanding how a person works and their skills that require improvement. AI assistants and other tools will be able to provide users with precisely the content they need at a specific moment and in a convenient format. This is a goal worth striving for. Implementing this concept will allow corporate universities to move from the mass creation of diverse electronic content to deeper and more personalized learning. This approach will ensure more effective acquisition of knowledge and skills that meet employee needs.
By "going deeper," do you mean the maximum personalization made possible by expanding digital technologies?
Personalization plays a key role in integrating with work tasks. It is important to create a system that provides a deeper understanding of each employee's needs. This will allow you to determine what exactly is needed to improve effectiveness in your current professional role or to advance to the next career level. This approach promotes skill development and increased productivity, which, in turn, has a positive impact on the overall performance of the team and the organization as a whole.
It is necessary to offer employees a suitable educational solution focused on their goals and motivations. With the development of technology and digital footprints, new opportunities are opening up that allow us not only to partially solve this problem but also to make significant progress in this direction. It's important to start with those professional roles that are already well-digitized and require the use of hard skills. I am confident that in the future it will be possible to gradually cover other categories of professions, which will expand opportunities for training and advanced training of employees.
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Personalization using neural networks today seems like a complex task. However, in a year the implementation of such technologies will become a reality. Neural networks will open new horizons for personalized content, improving user interactions and increasing marketing effectiveness. The development of algorithms and their integration into business processes is expected to significantly simplify the creation of a unique experience for each client. Keep an eye on emerging technology trends to avoid missing out on the opportunities neural network personalization will present in the near future.
When analyzing a large task, it can be broken down into several key blocks or stages. The first stage involves research and information gathering, which allows for a better understanding of the context and requirements. The second stage is planning, where a strategy for task execution is developed and priorities are set. The third stage is implementation, during which tasks are carried out directly, including the allocation of roles and resources. The fourth stage involves monitoring and evaluating progress, allowing for the identification of potential problems and adjustments to the process. The final stage is results analysis, where the effectiveness of the work performed is assessed and recommendations for future projects are developed. This approach ensures a structured and efficient process for completing a large task.
To successfully digitize the necessary skills, it is important to consider the diversity of professional roles. This task may seem daunting due to the large number of positions and the specific skills required for each. However, it is essential to develop a clear structure that will clearly communicate to employees the competencies and abilities expected of them. This approach will not only improve performance but also create a more transparent system for assessing professional skills.
Successful professional development requires the creation of diverse learning content. This includes educational products that will help an individual progress from one skill level to the next. Such resources should be focused on developing the specific skills needed to achieve career goals. Educational materials may include courses, webinars, textbooks, and practical assignments that promote effective learning and help fill knowledge gaps.
It is necessary to establish a connection between work performance and the assessment systems used by managers and colleagues. This will allow one to evaluate how completing the program and learning assignments impacts employee performance in specific work tasks. This approach will create a closed-loop approach that promotes employee development and career advancement in line with their professional goals.
At SberUniversity, we are actively developing and implementing personalized solutions. Our team is working to create a customized educational experience for each student. We analyze students' needs and interests to offer them the most appropriate courses and materials. This process includes the use of modern technologies and methods aimed at optimizing the learning process and improving learning outcomes.
We have made significant progress in developing our content and can offer people valuable resources. However, in terms of understanding user needs and digitizing the necessary skills, we are only just beginning this process. Regarding the integration of training with real-world work outcomes, we are at the initial stage.
There are successful examples both in Russia and abroad where challenges related to personalized learning have been effectively addressed. Companies and educational institutions are implementing innovative approaches to adapting educational programs to the individual needs of students. These examples demonstrate how flexible learning systems can enhance student engagement and improve learning. The experiences of these organizations can serve as a foundation for developing effective personalized learning strategies at other institutions.
Currently, I have not been able to find effective solutions that fully meet my requirements. I have encountered examples of colleagues also striving in this direction. However, I cannot claim to have reviewed all the offerings available on the market. Therefore, I do not rule out the possibility that similar solutions already exist.